Hard Money Loans in Aztec
Suppose that you've come across this excellent bargain on a fix and flip property located in an ideal neighborhood, and you are either an experienced real estate investor or a newbie who hopes to try his hand at flipping. Professional property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k as an average on more than one occassion. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have been large factors to their successes. That said, you've also been developing your rehab and renovation knowledge, have a very good building contractor ready to go and are positive that you will be able to do a stellar job on this house.
But financing is often a different issue entirely. A traditional lending institution, for instance a bank, takes at least 1 to 2 months to approve the financing and deliver the capital. Given that sellers prefer a fast closing, it may be best to start searching for some other funding options.
What's more, for those who have a less-than-perfect credit rating or do not have a regular source of income, it can be harder to be eligible for bank financing, considering the tougher loan criteria banks have put in place of late. So will a shortage of financing keep you from following your dream? Certainly not, due to the fact you can always go the Aztec hard money loan route to fund your home renovating project.
A hard money home loan in Aztec offers you what is considered essential to most real estate transactions — a quick closing of only a few weeks and at times less. What's more, the LTV value can reach up to 70% of the place's valuation, as evaluated by a certified appraiser. With lending rates starting out around 10%, hard money real estate loans may look, initially, to be more expensive when compared with conventional bank financing. But in reality, the lending rate is not as relevant for these loans, because they will never be long-term loans. As it pertains to short-term loans of one or two years or less, you should think about them much like you would other expenses for your project. After you renovate and sell the home, recouping this expense is no different than recuperating the one for new kitchen appliances you placed into the property.
Apart from this, hard money mortgages are easy qualifying, even if you have got very bad credit. The person's credit score will not be the lone deciding factor for Aztec hard money lenders — in addition, they look at the piece of real estate, what is it valued at, where it is located, and its capacity to bring back their financial commitment if everything does not work out as intended. The amount that a person can put down in advance towards the house, his past real estate experience, and selling price of comparative homes in the same vicinity are additional details that go into ascertaining an individual's suitability for a hard money real estate loan.
Finding a hard money lender in Aztec to finance your real estate project is not very hard, assuming that the opportunity that lies before you is promising and boasts a good prospect for returns. Enter your info into the form or give us a call to talk about your property or properties.
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